Thursday Closing Livestock Market Summary

GENERAL COMMENTS

Scattered feedlot sales were evident in several areas with live and dressed prices about steady with Wednesday's decline. According to the closing report, the national hog base is $0.36 higher ($76-$85, weighted average $82.11). Corn futures closed a penny plus higher, mildly supported by smaller-than-expected rainfall amounts reported across much of Iowa. Wall Street closed mixed with the Dow up 85 points and the Nasdaq off by 40.

LIVE CATTLE

For the most part, live futures closed moderately higher (i.e., steady to 90 higher) with all but spot August building a little on Wednesday's bounce. 2018 contracts are trying hard to dig in above 100-day moving average. The weekly closed scored on Friday could be important in that regard. Beef cut-outs: significantly lower, off $0.64 (choice, $206.43) to $1.21 (select, $196.66) with moderate demand and heavy offerings (89 loads of choice cuts, 43 loads of select cuts, 4 loads of trimmings, 10 loads of ground beef).

FRIDAY'S CASH CATTLE CALL:

Steady with Wednesday's lower trade. Clean-up action could surface in several corner on Friday. Yet, for the most part, business seems to be done for the week.

FEEDER CATTLE

Feeder issues closed 135 to 172 points higher, spurred by short-covering and signs of oversold charts. Besides oversold oscillators, spot August was no doubt supported by the premium status of the cash index. CME cash feeder index: 07/26: $151.30, off $0.27.

LEAN HOGS

While August and October managed to settle some higher, most contracts finished moderately lower (i.e., off 12 to 40). With spot August slowly firming and the cash index premium beginning to erode, the late-summer basis seems to finally be converging. The carcass value once again took a tumble, significantly tripped by all major primals except the ham and belly. Pork cut-out: $100.50, off $1.82. CME cash lean index for 07/25: $89.84, off $0.33 (DTN Projected lean index for 07/26: $89.39, off $0.45).

FRIDAY'S CASH HOG CALL:

Steady to $1 lower. Hog buyers are expected to open on the defensive in the morning thanks to flagging carcass values and ideas of building numbers in August.